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Kenya Import Duty Rate for Used & Second-Hand Cars

HS 8703 · Used motor vehicles for transport of persons

Kenya MFN Import Duty Rate

Live

25% + excise

on CIF value

25% import duty + IDF 3.5% + RDL 2.5% + age-based excise (higher for older vehicles) + VAT 16%. Maximum age 8 years (restricted). Total can reach 50–80% of CIF.

How duty is calculated

CIF value

Product cost + international freight + insurance

Import duty (25% + excise)

Applied to CIF value. EU, UK, and most countries use CIF.

VAT (16%)

Applied to CIF value + duty. Collected at customs.

Use our Landed Cost Calculator to compute the full cost including freight, brokerage, and last-mile delivery.

Worked example: used & second-hand cars worth US$10,000

A commercial shipment invoiced at US$10,000 with US$900 of international freight and insurance. Kenya charges duty on the CIF value (goods + freight + insurance), so the duty base is US$10,900. Customs converts the amount to KES at the official exchange rate on the day of import.

Charge	At 25%
Import duty	$2,725
Import Declaration Fee (3.5%)	$382
Railway Development Levy (2.5%)	$273
VAT (16%)	$2,285
Total paid at the border	$5,664

VAT is usually recoverable for a registered business, so the cost that stays with you is the duty and levies. Excise, anti-dumping duties and broker fees are not included.

Classifying used & second-hand cars correctly

Used cars share heading 8703 with new ones; the age, engine size and fuel type of the vehicle decide the subheading and, in many countries, the excise.

Many countries cap vehicle age (Kenya eight years, several others five) or ban used imports outright
Customs often values used cars from official price guides rather than the invoice
Right-hand-drive vehicles are banned for registration in some left-hand-drive markets

Compliance. Expect a pre-shipment roadworthiness or radiation inspection (e.g. JEVIC or QISJ for cars from Japan) and deregistration papers from the country of export.

Importing into Kenya: what you need

The Kenya Revenue Authority (KRA) clears goods through the iCMS system; duty follows the East African Community Common External Tariff.

Registration. A KRA PIN for the importer and a licensed clearing agent for commercial consignments.

Low-value shipments. Small personal parcels may be cleared through simplified postal or courier procedures, but commercial imports pay the full EAC duty, IDF and RDL.

Documents customs will ask for

Import Declaration Form (lodged before shipment)
Commercial invoice and packing list
Bill of lading or air waybill
KEBS Certificate of Conformity (PVoC) for regulated products
Certificate of origin for EAC, COMESA or AfCFTA preference

Charges on top of duty

Import Declaration Fee: 3.5% of customs value
Railway Development Levy: 2.5% of customs value
VAT 16% on value + duty + levies
Excise duty on vehicles, alcohol, cosmetics and other listed goods

Watch out. Used vehicles must be under eight years from the year of first registration to be imported, and they pay excise on top of the 25% duty.

Frequently asked questions

What is the import duty rate for Used & Second-Hand Cars in Kenya?

The MFN (Most Favoured Nation) import duty rate for Used & Second-Hand Cars (HS 8703) in Kenya is 25% + excise on the CIF value. 25% import duty + IDF 3.5% + RDL 2.5% + age-based excise (higher for older vehicles) + VAT 16%. Maximum age 8 years (restricted). Total can reach 50–80% of CIF.

Is VAT charged on Used & Second-Hand Cars imports to Kenya?

Yes. Kenya charges VAT at 16% on the CIF value plus any import duty. This applies to virtually all commercial imports.

Are there FTA rates available for Used & Second-Hand Cars in Kenya?

Kenya has free trade agreements with EAC (Uganda, Tanzania, Rwanda, Burundi, DRC), COMESA, AfCFTA. Check whether your origin country qualifies for a preferential rate on HS 8703.

How is import duty calculated for Used & Second-Hand Cars entering Kenya?

Duty is calculated on the CIF value of the goods. CIF value includes the product cost, international freight, and insurance. The MFN duty of 25% + excise is applied to this value. VAT (16%) is then applied on the duty-paid value.